FB breaks back above 100-day moving average
Facebook Inc. (FB) Technical Analysis Report for Aug 13, 2019 | by Techniquant Editorial Team
FB ended Tuesday at 188.45 gaining $3.08 (1.66%), underperforming the Nasdaq 100 (2.2%). Closing above Monday's high at 187.59, Facebook confirmed its breakout through the prior session high after trading up to $3.79 above it intraday.
Daily Candlestick Chart (FB as at Aug 13, 2019):
Tuesday's trading range has been $6.01 (3.24%), that's slightly above the last trading month's daily average range of $5.15. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FB.
The stock managed to close back above the 100-day moving average at 185.83. After spiking up to 191.38 during the day, the market found resistance at the 50-day moving average at 190.75. The last time this happened on December 18, 2018, FB lost -7.25% on the following trading day.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the nearby swing low at 184.46 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Facebook. Out of 13 times, FB closed higher 61.54% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 61.54% with an average market move of 1.28%.
With four out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are AAPL gaining 4.23% and AMZN closing 2.21% higher. None of the markets ended the day in the red. Read more